Influence of Strategy Implementation on Performance of Water Service Providers in the Lower-Eastern Counties of Kenya

Abstract

Water scarcity continues to constrain socioeconomic development in Lower-Eastern Kenya, with water service providers struggling to address high Non-Revenue Water (NRW) levels, weak coverage expansion, and financial sustainability concerns. This study examined the influence of strategy implementation on the performance of licensed water service providers in the region. Grounded in the Resource-Based View (RBV), which emphasizes effective deployment of valuable, rare, inimitable, and non-substitutable resources for competitive advantage, the study assessed how strategic processes translate into organizational outcomes. A positivist philosophy and descriptive survey design guided the research. A stratified purposive sample of 183 respondents was drawn from a population of 758 staff across ten providers. Data were collected through structured questionnaires, pre-tested for reliability, and analyzed using SPSS Version 21. Descriptive statistics established existing practices, while regression analysis tested the hypothesized relationship. Findings revealed strong leadership engagement and organizational capacity but highlighted gaps in employee support, particularly inadequate training, motivation, and resource provision. Inferential results demonstrated a significant positive relationship between strategy implementation and performance (R = 0.526, R2 = 0.277, β = 0.491, p < 0.001). This indicates that strategy implementation explains 27.7% of performance variation, confirming that providers with robust implementation processes achieve superior efficiency, customer satisfaction, and financial outcomes. The study concludes that strategy implementation is a critical driver of performance but must be complemented by broader reforms and capacity-building initiatives. It recommends strengthening employee support systems, enhancing monitoring and evaluation mechanisms, building implementation capabilities across organizational levels, prioritizing financial sustainability, and investing in research and innovation to foster adaptive strategies for long-term water service improvement.